Please explain the W-4 to me...

AchtungBaby80 · #1 10-25-2004, 03:43 PM

For the single folks, do you all claim yourself on your W-4? The reason I'm asking is because I don't claim myself, but I'm barely clearing enough money after bills to scrape by (my parents are buying me food--aaggh) and I was considering changing my W-4 so that I would be claiming myself, which would give me a little extra every week. I know I'll get a tax return at the end of the year, but...I really need the money now, as opposed to then. However, they tell me that if you claim yourself, you might have to pay more at the end of the year, but nobody knows how much because the understanding of taxes has so far eluded mankind. So what do you all suggest?

AlphaSigOU · #2 10-25-2004, 04:06 PM

I've been claiming 'single and 1' (single and claiming 1 (myself) as a deduction) for years with most years getting a decent tax refund without paying an exorbitant amount of taxes.

You can claim 'single and zero' (no deductions) but you get more taxes taken outta you during the year. On the flip side, you might get a little more money in your tax refund.

A word of caution: if you are working two jobs (even part-time) you will need to do some math in order that you get enough taxes withheld from both jobs so that you don't get Roto-Rootered by the Tax Gestapo. Many people make the mistake of setting up their W-4 at the same withholdings as their primary job; you should adjust your W-4s accordingly so that you get the right amount of taxes taken out and not leave you in the poorhouse. The back site of more recent W-4 forms have a two-job withholding worksheet that will help you get straight.

And in the states that collect income taxes, doublecheck to make sure they're taking out the right amount!

aephi alum · #3 10-25-2004, 04:09 PM

Do you usually get a substantial tax refund? If so, claiming a deduction for yourself on your W-4 might not be a bad idea. You'll get a smaller refund when you file your taxes (or you might owe money) but you'll have a little extra cash now.

AGDee · #4 10-25-2004, 06:19 PM

Besides, if you change it now, it will only cover a few paychecks this year

Tom Earp · #5 10-25-2004, 06:19 PM

Sorry to disagree. Dont claim youself untill all said and done. Get some money back, you wont miss it when it is taken out.

Use the existing money if you dont beats the hell our of paying it in the end and I mean rear end when you may not have it. But a little cushion at the end amy be of help.

Small business man, I dont pay taxes, just have to make enough to pay and I dont!

Miss the little and get a little back. Spend it and pay at the end!

adpialumcsuc · #6 10-25-2004, 06:24 PM

I found that it doesn't make a huge difference. I am married and still claiming single and zero. I know I could change it and save a little but I am too paranoid about having to pay at the end of the year. It also depends on the amount of deducations that you have at the end of the year.

AchtungBaby80 · #7 10-25-2004, 06:52 PM

Thanks for the advice...even though I'm still debating. If I changed it, I think I would have about $20 extra a week, which is a lot to me. Listen, guys, I'm living on about $30 a week after all my bills are paid, and that's for gas, food, entertainment, everything. But I don't wanna change it and then end up having to pay--gaaaaahhh! Why can't they just take out the correct amount of taxes to begin with?

AGDee · #8 10-25-2004, 07:04 PM

After being married to an accountant for 7 years, I changed my views on this, because his logic made sense. I always looked at tax refunds as a way to save money. He looked at it this way: If you get a huge refund back at the end of the year, then you let the government use your money interest free! If you are using charge cards that have high interest rates, it is much more logical to change your deductions to be paying that extra money on your debt, or to avoid using credit if you can rather than letting them use your money interest free while you accumulate debt with interest. I never ever ever owed money when I was single. I always got a refund. The only time I owed money was the first year I had a maternity leave. They hadn't taken taxes out of my disability pay while on leave so I was stuck.

Just my perspective...

Dee